Key Takeaways
- Binance faces legal challenges in Canada for allegedly offering unregistered crypto derivative products.
- The lawsuit accuses Binance of violating Ontario Securities Act and federal regulations;
- The case adds to Binance's global legal issues.
Binance, one of the world's leading crypto exchanges, is currently facing legal challenges in Canada, as it is accused of offering unregistered crypto derivative products to retail investors.
The matter is now before the Ontario Superior Court of Justice, where it was brought into focus with a certification motion filed on April 19.
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The class-action lawsuit is led by plaintiffs Christopher Lochan and Jeremy Leeder, who claim that Binance has violated the Ontario Securities Act (OSA) and federal regulations by offering these derivatives.
The lawsuit claims that Binance failed to adhere to its obligation to stop operations in Ontario, which it announced in June 2021, following regulatory pressure from the Ontario Securities Commission (OSC).
Despite Binance declaring its withdrawal from the Canadian market again in May 2023, the OSC continues to investigate the firm.
The plaintiffs are demanding compensation for damages and the rescission of their contracts. The outcome of this case could determine how crypto businesses must comply with local securities laws.
This is yet another legal hurdle for Binance on the global stage. The crypto exchange is confronting legal issues in Nigeria, where it's accused of manipulating the Nigerian naira, resulting in the detention of two company executives.
Additionally, in the Philippines, the Securities and Exchange Commission has blocked Binance from operating because it doesn't have the required licenses.
